Finding 1215458 (2023-004)

2023-004 Cash Management Compliance ALN: 10.766 Program: Emergency Rural Health Care Grant Agency: US Department of Agriculture Compliance Requirement: C Cash Management Criteria: The compliance supplement requires organizations receiving federal funds to establish controls and procedures that would minimize the amount of time between drawdowns and the disbursements of grant funds. Finding/ Condition: Federal grant funds were received prior to obligation/disbursement of funds. Questioned Cost: None. Effect: Reimbursement occurred before needed for disbursement purposes. Cause: Miscommunication between grant staff and federal agency staff caused payment to be requested prior to expenditures being made. Repeat Finding: No. Recommendation: We recommend training for staff to ensure cash management requirements are followed. Management should track the status of the federally funded cash disbursements against the need to draw down funds on related grants. Views of Responsible Officials and Corrective Action Plan: The Organization agrees with the finding. Please refer to the corrective action plan on page 34.